Signature Bank’s $100,000 Limit for Binance Transactions Amid Crypto Market Scale-back

Binance, the biggest cryptocurrency exchange worldwide,declaredthat Signature Bank would only process transactions with a minimum amount of $100,000 as the financial institution aims to reduce its involvement with digital asset markets, according to a report by Bloomberg on January 22nd.

Binance said in a statement:

One of our fiat banking partners, Signature Bank, has advised that it will no longer support any of its crypto exchange customers with buying and selling amounts of less than 100,000 USD as of February 1st, 2023.

This applies to all of Binance’s crypto exchange clients and may affect some individual users’ ability to use SWIFT bank transfers to buy or sell crypto with/for USD for amounts less than $100,000. However, the statement also clarifies that no other banking partners will be impacted.

According to Bloomberg’s report, Contagion fears in the digital assets market have reached traditional finance companies such as Signature and Silvergate Capital.

They saw its shares tumble as much as 40% after the bank disclosed its customers withdrew about $8.1 billion of digital-asset deposits during the fourth quarter. Signature’s shares fell 64% last year.

Binance stated in the statement that it is currently working to find an alternative solution and that only a small fraction of its users, 0.01%, are serviced by Signature Bank.

The FDIC, the primary regulator for state-chartered banks in the US, warned of crypto-asset risks, leading to a change in banking practices.

The FDIC stated that business models focused on crypto-asset activities or high exposure to them raise significant safety and soundness concerns. However, they didn’t prohibit or discourage banks from serving any specific customer type.

Binance Charity Launches Scholar Program

In a groundbreaking move to bridge the skills gap in the blockchain industry, Binance Charity has announced the launch of the Binance Charity Scholar Program (BCSP). The initiative aims to provide free Web3 education and training courses to tech-savvy students, enabling them to upskill without having to overcome financial barriers.

According to a January 20thblog postby Binance Charity, the organization recognizes that digital education and skills development can be out of reach for many, leading to a blockchain industry that lacks diversity and talent.

The BCSP seeks to alter this by paying for tuition and course fees at some of the top colleges, universities, and institutions of higher learning in the globe.

The response to the program has been overwhelming, with over 82,000 applicants expressing interest in becoming a part of the next BCSP cohort, equating to an acceptance rate of about 37%.

The Binance Charity Scholar Program is a major step towards leveling the playing field in the blockchain industry and providing equal opportunities for all. With the support of leading educational partners, the program is set to provide the training and skills needed for the next generation of blockchain professionals to thrive.

Related Reading | DCG Denies Involvement In Genesis Capital Bankruptcy Filing